Case Law Details
Anand Mercantile Samaj Seva Trust Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that benefit of exemption under Section 11(1)(a) and 11(2) of the Income Tax Act is not available to “deemed income” under Section 11(3) of the Income Tax Act
Facts- During the course of assessment, the Assessing Officer observed that the assessee had claimed exemption under Section 1 1(1)(a) and Section 11(2) of the Act on “deemed income” under Section 11(3) of the Act as well. Accordingly, the Assessing Officer restricted the claim of the assessee under Section 11(2) of the Act to Rs. 73,89,082/-.
The issue for consideration here is whether “deemed income” under Section 11(3) of the Act is eligible for exemption under Section 11(1)(a) and Section 11(2) of the Act.
Conclusion- In the case of “deemed income” under Section 11(3) of the Act, where the amount is already spent by assessee for purposes other than charitable purposes, it cannot be said that the assessee accumulated such income with an intention to apply it for rightful purpose. Therefore, in view of the above observations we are of the considered view that “deemed income” under Section 11(3) of the Act is not eligible for claim of exemption under Section 11(1)(a) and Section 11(2) of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
